Required information IThe following information applies to the questions displayed below.] The following summary data for the payroll period ended December 27, 2018, are available for Cayman Coating Co.: 95,000 Gross pay FICA tax withholdings Income tax withholdings Group hospitalization insurance Employee contributions to pension plan Total deductions Net pay 24 14,990 1,580 29,775 Additional information: - For employees, FICA tax rates for 2018 were 7.65% on the first $118,500 of each employee's annual earnings. However, no employees had accumulated earnings for the year in excess of the $118,500 limit. - For employers, FICA tax rates for 2018 were also 7.65% on the first $118,500 of each employee's annual earnings. The federal and state unemployment compensation tax rates are 0.6% and 5.4%, respectively. These rates are levied against the employer for the first $7,000 of each employee's annual earnings. Only $14,800 of the gross pay amount for the December 27, 2018, pay period was owed to employees who were still under the annual limit.
Required information IThe following information applies to the questions displayed below.] The following summary data for the payroll period ended December 27, 2018, are available for Cayman Coating Co.: 95,000 Gross pay FICA tax withholdings Income tax withholdings Group hospitalization insurance Employee contributions to pension plan Total deductions Net pay 24 14,990 1,580 29,775 Additional information: - For employees, FICA tax rates for 2018 were 7.65% on the first $118,500 of each employee's annual earnings. However, no employees had accumulated earnings for the year in excess of the $118,500 limit. - For employers, FICA tax rates for 2018 were also 7.65% on the first $118,500 of each employee's annual earnings. The federal and state unemployment compensation tax rates are 0.6% and 5.4%, respectively. These rates are levied against the employer for the first $7,000 of each employee's annual earnings. Only $14,800 of the gross pay amount for the December 27, 2018, pay period was owed to employees who were still under the annual limit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:a-2. Assuming that Cayman Coating Co.'s payroll for the last week of the year is to be paid on January 3, 2019, record the journal entry
to show the effects of the December 27, 2018, entries for Accrued payroll. (If no entry is required for a transaction/event, select "No
journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
1
Record the accrued payrollI.
Note: Enter debits before credits.
Event
General Journal
Debit
Credit
1
Record entry
Clear entry
View general journal
![Required information
[The following information applies to the questions displayed below.]
The following summary data for the payroll period ended December 27, 2018, are available for Cayman Coating Co.:
Gross pay
FICA tax withholdings
Income tax withholdings
Group hospitalization insurance
Employee contributions to pension plan
Total deductions
Net pay
95,000
14,990
1,580
29,775
Additional information:
- For employees, FICA tax rates for 2018 were 7.65% on the first $118,500 of each employee's annual earnings. However,
no employees had accumulated earnings for the year in excess of the $118,500 limit.
- For employers, FICA tax rates for 2018 were also 7.65% on the first $118,500 of each employee's annual earnings.
• The federal and state unemployment compensation tax rates are 0.6% and 5.4%, respectively. These rates are levied
against the employer for the first $7,000 of each employee's annual earnings. Only $14,800 of the gross pay amount for
the December 27, 2018, pay period was owed to employees who were still under the annual limit.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdd3c27d4-b808-4d72-a714-fa9a685b9143%2F470cbc39-cc1c-4de9-bd70-04825622c467%2F97ro33d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The following summary data for the payroll period ended December 27, 2018, are available for Cayman Coating Co.:
Gross pay
FICA tax withholdings
Income tax withholdings
Group hospitalization insurance
Employee contributions to pension plan
Total deductions
Net pay
95,000
14,990
1,580
29,775
Additional information:
- For employees, FICA tax rates for 2018 were 7.65% on the first $118,500 of each employee's annual earnings. However,
no employees had accumulated earnings for the year in excess of the $118,500 limit.
- For employers, FICA tax rates for 2018 were also 7.65% on the first $118,500 of each employee's annual earnings.
• The federal and state unemployment compensation tax rates are 0.6% and 5.4%, respectively. These rates are levied
against the employer for the first $7,000 of each employee's annual earnings. Only $14,800 of the gross pay amount for
the December 27, 2018, pay period was owed to employees who were still under the annual limit.
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